It has been about a month since the last earnings report for Markel Group (MKL). Shares have added about 2.8% in that time frame, underperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Markel Group due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Markel Q1 Earnings, Revenues Miss Estimates, Rise Y/Y

Markel Group reported first-quarter 2024 net operating earnings per share of $18.17, which missed the Zacks Consensus Estimate by 1.8%.  The bottom line, however, increased 4.7% year over year.

Markel witnessed improved earned premiums and increased net investment income.

Quarterly Operational Update  

Total operating revenues of $3.6 billion missed the Zacks Consensus Estimate by 1.5%. The top line rose 9% year over year.

Earned premiums increased 8.1% to $2.1 billion in the reported quarter.

Net investment income increased 37% year over year to $218 million in the fourth quarter.

Total operating expenses increased 8.3% to $3.1 billion, owing to underwriting, acquisition and insurance expenses, product expenses, and services and other expenses.

MKL’s combined ratio deteriorated 120 basis points (bps) year over year to 95.2 in the reported quarter.

Segment Update

Insurance: Gross premiums increased 5% year over year to $2.2 billion. The uptick was driven by new business growth and more favorable rates within personal lines and program product lines, as well as increases in most classes of international portfolio.

Underwriting profit came in at $107.3 million, up 11% year over year. The combined ratio improved 10 bps year over year to 94.3.  

Reinsurance: Gross premiums remained flat year over year at $553.3 billion. Higher gross premiums within marine and energy, general liability and credit and surety product lines were offset by a significant decline in gross premiums within professional liability product lines.

Underwriting profit was $12 million, down 50% year over year. The combined ratio deteriorated 470 bps year over year to 95.3 in the first quarter of 2024.

Markel Ventures: Operating revenues of $1.1 billion improved 3% year over year. The growth was driven by moderately higher revenues at consumer and building products businesses, construction services businesses and transportation-related businesses due to a combination of increased demand and higher prices.

Operating income of $103.9 million increased 13% year over year, driven by the impact of higher operating margins at consumer and building products businesses as a result of declines in the cost of materials, freight and labor, as well as higher revenues.